New Mexico Application For Rural Job Tax Credit

Application For Rural Job Tax Credit
Form RPD-41238
STATE OF NEW MEXICO
TAXATION AND REVENUE DEPARTMENT

RPD - 41238	
Rev. 10/23/2014

APPLICATION FOR RURAL JOB TAX CREDIT
A Rural Job Tax Credit is offered to employers who are eligible for Job Training Incentive Program assistance. It is based on the wages
earned in qualifying jobs occupied by an eligible employee for at least forty-eight (48) weeks during a qualifying period.
Mail to: New Mexico Taxation and Revenue Department (TRD), ATTN: Director's Office, P.O. Box 8485, Albuquerque, New Mexico 871988485. For the status of the credit application call (505) 383-0184 or (505) 383-0171.

PLEASE PRINT OR TYPE
Name of business

New Mexico Business Tax Identification Number (NMBTIN)

Physical address

City, state and ZIP code

Mailing address

City, state and ZIP code

Name of contact person

Telephone number

Email address

Enter the information requested under the tier area column that describes the location of the job.
(Tier areas are defined on the back of this form.)
TIER ONE AREA	

	

TIER TWO AREA

1.	 Number of eligible jobs claimed*	

______________	

______________

2.	 Total Eligible Wages: ($16,000 maximum per job certificate)*	

______________	

______________

3.	 Rural Job Tax Credit:	

______________	

______________

	

	

	

A certificate is required for each eligible job

Pursuant to Paragraphs (1), (2), and (3), 26 U.S.C. Section 51(c).

Multiply line 2 by .0625

* Attach Form RPD-41247, Certificate of Eligibility for the Rural Job Tax Credit, for each job for which credit is claimed in
an eligible period.
_________________________________________	
Taxpayer's Signature	

_______________________________
Title

_________________________________________	
Telephone Number	

_______________________________
Date

NEW MEXICO RURAL JOB TAX CREDIT
Rural Job Tax Credit - Authorized by the New Mexico Taxation and Revenue Department
Approval by the New Mexico Taxation and Revenue Department			
Department authorization: ____________________________________	
Date issued: ________________________________________

Claim No. __________________

Title: __________________________________

Credit sequence number: ______________________

Total amount approved: ________________________________
This credit may be sold, exchanged, or otherwise transferred. Use Form RPD-41365, Notice of Transfer of Rural Job Tax Credit, to
report to TRD a transfer or distribution of approved rural job tax credits. The parties to such a transaction shall notify TRD of the sale,
exchange or transfer within ten days of such transaction. The holder of this credit may apply all or a portion of the rural job tax credit to
gross receipts tax (excluding local option taxes imposed by a municipality or county), compensating or withholding tax, less the amounts
of any other credit applied. The holder also may apply the credit to personal or corporate income tax liability. The credit may be carried
forward for a period of three years from the date issued as referenced above.

RPD - 41238	
Rev. 10/23/2014

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Rural Job Tax Credit Instructions

ABOUT THIS CREDIT
The purpose of the rural job tax credit is to encourage
businesses to start new businesses in rural areas of New
Mexico.
The Rural Job Tax Credit Act, Section 7-2E-1.1 NMSA 1978
provides a credit for eligible rural employers for wages paid
to an eligible employee for each qualifying job the employer
creates after July 1, 2000. The amount of the rural job tax
credit is 6.25% of the first $16,000 in wages paid for the
qualifying job in a qualifying period. An eligible employee
must occupy the qualified job for at least 48 weeks.
The Rural Job Tax Credit may be claimed for each qualifying job for a maximum of four qualifying periods if the job
is performed or based at a location in a tier one area, and
two qualifying periods if the job is performed or based at
a location in a tier two area.
Definition of Tier Areas and Rural Area
A rural area excludes Albuquerque, Corrales, Farmington,
Las Cruces, Los Alamos County, Los Ranchos, Rio Rancho, Santa Fe, or Tijeras, or any area within a ten-mile
zone around any of these municipalities. A tier two area is
within the cities of Alamogordo, Carlsbad, Clovis, Gallup,
Hobbs, and Roswell. A tier one area is anywhere within
New Mexico not listed above.
Definition of Eligible Employer
An employer who is eligible* for Job Training Incentive
Program (JTIP) assistance by the New Mexico Economic
Development Department, pursuant to Section 21-19-7
NMSA 1978. To learn more about JTIP assistance contact:
New Mexico Economic Development Department, Joseph
M. Montoya Building, 1100 So. St. Francis Drive, Santa
Fe, NM 87505-4147 or call: (505) 827-0300 or (800) 3743061. Their Internet address is: www.gonm.biz/.
*Prior to July 1, 2013, the employer needed to be approved for JTIP assistance. Effective July 1, 2013, an
eligible employer qualifies when they can show that they
are eligible for JTIP assistance.
Definition of Qualifying Job
A job established by an eligible employer that is occupied
by an eligible employee for at least 48 weeks of a qualifying period.
A qualifying job shall not be eligible for a rural job tax credit
pursuant to this section if:
1.	 The job is created due to a business merger, acquisition or other change in organization;
2.	 The eligible employee was terminated from employment in New Mexico by another employer involved in
the merger, acquisition or other change in organization; and

3.	

Page 1 of 2
The job is performed by:
a.	 The person who performed the job or its functional
equivalent prior to the business merger, acquisition or other change in organization; or
b.	 A person replacing the person who performed
the job or its functional equivalent prior to the
business merger, acquisition or other change in
organization.

If, however, a qualifying job that was created by another
employer and for which the rural job tax credit claim was
received by the Taxation and Revenue Department prior
to July 1, 2013, and is under review or has been approved
shall remain eligible for the rural job tax credit for the balance of the qualifying periods for which the job qualifies
by the new employer that results from a business merger,
acquisition or other change in the organization.
A job shall not be eligible for a rural job tax credit pursuant to
this section if the job is created due to an eligible employer
entering into a contract or becoming a subcontractor to a
contract with a governmental entity that replaces one or
more entities performing functionally equivalent services
for the governmental entity in New Mexico unless the job
is a qualifying job that was not being performed by an
employee of the replaced entity.
Definition of Qualifying Period
A period of 12 months beginning on the day an eligible
employee began working in the qualifying job, or a period
of 12 months beginning on the anniversary of the day an
eligible employee began working in a qualified job.
Definition of Wages
Effective July 1, 2013, wages means all compensation paid
by an eligible employer to an eligible employee through
the employer's payroll system, including those wages the
employee elects to defer or redirect, such as the employee's
contribution to 401(k) or cafeteria plan programs, but not
including benefits or the employer's share of payroll taxes.
CERTIFICATIONS
The employer shall certify the amount of wages paid to
each eligible employee during each qualified period, the
number of weeks during the period the position was occupied, and whether the qualifying job was in a tier one or
a tier two area. Form RPD-41247, Certificate of Eligibility
for the Rural Job Tax Credit, must be completed for each
eligible job within an eligible period. Certificates must be
notarized and submitted with the application.
APPLICATION
Apply to the Taxation and Revenue Department (TRD)
for the credit by completing Form RPD-41238, Application for Rural Job Tax Credit. Complete Form RPD-41247,
Certificate of Eligibility for the Rural Job Tax Credit, for

RPD - 41238	
Rev. 10/23/2014

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Rural Job Tax Credit Instructions

each eligible job within an eligible period. On the application, summarize the wages reported on the certificates
and calculate the amount of credit. Attach certificate(s)
to the application and submit to TRD. TRD may approve
the credit and issue to the applicant a document granting
the tax credit.
FORM INSTRUCTIONS
Complete all information requested in the address block.
1.	 Enter the number of eligible jobs for which credit is
claimed. (A certificate must be attached for each
eligible job).
2.	 Enter the sum of the wages for each eligible job as
certified by the applicant. (Maximum $16,000 of wages
paid for each qualifying job per qualified period.) The
Rural Job Tax Credit may be claimed a maximum of:
	 a.	 Four qualifying periods for each job performed or
based at a location in a tier one area, or
	 b.	 Two qualifying periods for each job performed or
based at a location in a tier two area.
3.	 Multiply line 2 by .0625 to compute the total Rural Job
Tax Credit.
Attach a Form RPD-41247, Certificate of Eligibility for the
Rural Job Tax Credit, for each eligible job included in line 1.
Complete taxpayer signature, title, telephone number
and date.
Mail to: Taxation and Revenue Department, ATTN: Director's Office, P.O. Box 8485, Albuquerque, New Mexico
87198-8485. For status of the application call, (505) 3830184 or (505) 383-0171.

Page 2 of 2

USING THE RURAL JOB TAX CREDIT
The holder of the credit may apply all or a portion of the Rural
Job Tax Credit to gross receipts less any taxes collected
with respect to local option gross receipts taxes (5.125%
of taxable receipts), compensating, and withholding taxes
due, less the amount of any credit other than the Rural Job
Tax Credit applied. The holder may also apply the credit
to personal or corporate income tax liability. If a PTE is
a holder of the credit, the PTE may pass the credit to its
owners so that the owners may claim the credit against
their corporate or personal income tax liabilities. Use Form
RPD-41365, Notice of Transfer of Rural Job Tax Credit, to
report to TRD a distribution of approved rural job tax credit
to the owners, members or partners of a PTE.
To claim approved credits against tax liabilities, complete
Form RPD-41243, Rural Job Tax Credit Claim Form, and
submit the form with the return to which the taxpayer wishes
to apply the credit. The credit can be carried forward for
a period of three years from the date the credit is issued.
TRANSFER OF CREDIT
This credit may be sold, exchanged, or otherwise transferred.
The parties to such a transaction shall notify the New Mexico
Taxation and Revenue Department within ten days of the
transaction. Use Form RPD-41365, Notice of Transfer
of Rural Job Tax Credit, to report to TRD a transfer or
distribution of approved rural job tax credits.
Mail the notification of transfer to: New Mexico Taxation
and Revenue Department, PIT Edit Error, P.O. Box 5418,
Santa Fe, New Mexico 87502-5418.